Galaxy Digital has agreed to buy BitGo, the U.S.-regulated crypto custody specialist, for $1.2 billion in stock and cash. The acquisition comes as Galaxy Digital plans a U.S. listing later this year.
Coindesk reported last month that the talks between the two are at an advanced stage, and now the deal is expected to close in Q4, subject to regulatory scrutiny and approval by a vote by Galaxy shareholders.
According to the terms of the deal, BitGo shareholders will get 33.8 million of newly issued shares of Galaxy Digital common stock and about $265 million in cash, giving the deal a transaction value of approximately $1.2 billion based on Galaxy Digital's closing share price on May 4.
"The acquisition of BitGo establishes Galaxy Digital as a one-stop-shop for institutions and significantly accelerates our mission to institutionalize digital asset ecosystems and blockchain technology," said Novogratz, Galaxy's CEO and founder.
BitGo shareholders will own about 10% of the combined company. Mike Belshe BitGo CEO will become Galaxy Digital deputy CEO and a member of the company's board.